It’s rare when the Street gets excited about bonds. But after last week’s wink and nod from Jerome Powell that the pause on rates might also mean the Fed is done for the cycle, all classes of bonds ripped higher in reaction. Calls from trading desks around the world to “lock in rates” were resonating throughout all of last week. The combination of last Monday’s Treasury issuance of the less-than-forecast $776 billion for the current quarter, followed by the schedule of shorter maturities that would meet better demand, followed by a dovish Fed policy statement after which was topped off by...…It’s rare when the Street gets excited about bonds. But after last week’s wink and nod from Jerome Powell that the pause on rates might also mean the Fed is done for the cycle, all classes of bonds ripped higher in reaction. Calls from trading desks around the world to “lock in rates” were resonating throughout all of last week. The combination of last Monday’s Treasury issuance of the less-than-forecast $776 billion for the current quarter, followed by the schedule of shorter maturities that would meet better demand, followed by a dovish Fed policy statement after which was topped off by...WW…

Last Tuesday’s release of September retail sales showed a monthly increase of 0.7% and above the 0.3% consensus following an upwardly revised 0.8% increase, from 0.6% in August. Excluding autos, retail sales were higher by 0.6% month over month, compared to a forecast of just 0.2%. Excluding gasoline, retail sales were still higher by 0.7%, and consumers are continuing to spend more than the Fed would prefer.Advertisement. The report is a double-edged sword in that, while the strong retail sales data bodes well for third-quarter GDP forecasts, it weighs on future Fed policy — the...…Last Tuesday’s release of September retail sales showed a monthly increase of 0.7% and above the 0.3% consensus following an upwardly revised 0.8% increase, from 0.6% in August. Excluding autos, retail sales were higher by 0.6% month over month, compared to a forecast of just 0.2%. Excluding gasoline, retail sales were still higher by 0.7%, and consumers are continuing to spend more than the Fed would prefer.Advertisement. The report is a double-edged sword in that, while the strong retail sales data bodes well for third-quarter GDP forecasts, it weighs on future Fed policy — the...WW…